TOKYO, Sept 20 Tokyo Steel Manufacturing Co Ltd
, Japan's top electric arc furnace steelmaker, said it
would slash prices of its products for October delivery by up to
13 percent to reflect soft local demand and weakening overseas
The company will cut prices by between 3,000 yen to 7,000
yen ($29 to $69) per tonne, it said in a press briefing on
Tuesday. That is between 4 percent and 13 percent, Reuters
This is Toyko Steel's first across-the-board cut in seven
months and comes five months after the company's attempt to
bolster product prices.
Tokyo Steel's pricing strategy is closely watched by Asian
rivals such as Posco, Hyundai Steel Co
and Baosteel, which export to Japan.
Prices for the company's main product, H-shaped beams, which
are used in construction, will fall by 7,000 yen, or 10 percent,
to 65,000 yen ($638) per tonne in October. Prices for steel
bars, including rebar, will drop by 7,000 yen, or 13 percent, to
47,000 yen a tonne.
"The price cut is to reflect the current market condition
and to send a signal to the market that the prices will be
bottoming out next month," Tokyo Steel's Managing Director
Kiyoshi Imamura told reporters.
"We had expected to see a pick-up in local demand this year,
but the delay in construction projects for the 2020 Summer
Olympic Games and redevelopment works in the Tokyo metropolitan
area has slowed a demand recovery," Imamura said.
Export demand is also under pressure, he said, due to
cheaper export prices from Chinese mills.
"Basically, oversupply from China has not changed."
($1 = 101.9300 yen)
(Reporting by Yuka Obayashi; Editing by Gopakumar Warrier)